Tennessee Department of Revenue explains how homeowners, renters can claim sales-tax refunds after natural disasters

Billy Trout, manager of the Department of Revenue’s taxpayer services education section, opened a Sept. 30, 2025 webinar introducing a step-by-step guide to Tennessee’s natural-disaster sales-tax refund program.

Katie, a presenter with the Department’s Taxpayer Services unit, said the program allows "a refund of the sales tax that has been paid on things like appliances, furniture, [and] building supplies" for Tennessee residents who received FEMA financial assistance for repair, replacement or construction of a primary residence damaged by a declared natural disaster. She noted the guidance presented was current as of 09/30/2025 and pointed participants to a PDF of the slides and the department’s webinar library.

Why it matters: The refunds reduce out-of-pocket costs for households rebuilding after disasters. Katie told attendees that approximately $730,000,000 in natural-disaster relief funding passed in 2025, underscoring state-level support for affected residents.

Who qualifies and the cap: The department said eligible claimants are Tennessee residents who received FEMA assistance tied to repairs or replacement of their primary residence. Refunds are limited to $2,500 per residence in total sales-tax reimbursement.

What’s eligible and limits: Department staff listed common eligible purchases and unit-price caps: - Major appliances (e.g., stoves, refrigerators, water heaters) are eligible only if the purchase price per item is $3,200 or less. - Interior residential furniture is eligible with the same $3,200 per-item cap. - Building supplies (drywall, roofing, gutters, windows, paint, disinfectants and similar materials) are eligible up to $500 per item or per unit (for example, $500 per box of flooring). Katie warned that luxury or higher-priced units that exceed the stated caps do not qualify.

What’s not eligible: Katie cautioned that items explicitly excluded include clothing, computers, televisions, dehumidifiers and household dishes; HVAC and central heating/air units are not included in the sales-tax relief list referenced in the guidance.

Contractor-paid tax and invoices: The department said Tennessee sales tax a contractor paid on eligible items may be included in a claimant’s submission, but claimants should supply invoices that list the taxable items and the tax paid. When an invoice lacks a sales-tax breakdown, Ben Blackwell of the department’s audit division said staff can "back out" the tax and that claimants should contact the refunds unit so auditors can work through the details.

How and when to file: Ben Blackwell told attendees that "a claim can be filed up to 1 year from the date on the FEMA decision letter," and he recommended waiting to file until all repair purchases and receipts have been collected. Claims may be filed electronically via 10tap.tn.gov/eservices (look for the natural-disaster refunds link) or submitted by paper using the department’s form. Paper claims are governed by the postmark date tied to the FEMA decision letter.

Documentation and evidence: Claimants must attach the FEMA decision letter and receipts or contractor invoices that show Tennessee sales tax was paid on eligible items. Katie and Ben said screenshots or online order invoices that include the order number, price and sales-tax amount are generally acceptable. They noted credit-card statements alone typically lack the item detail needed to substantiate a refund claim.

Review process and follow-up: The department will assign an auditor to each claim. Ben said auditors will contact claimants if documentation is incomplete rather than automatically rejecting a submission. Claimants should provide email and phone contact information so auditors can follow up.

Resources and contact: The refunds unit phone number displayed in the webinar was 615-741-0443; the department’s contact email shown was revenue.support@tn.gov. Staff said the webinar recording and PDF would be posted to the department’s webinar library by the next day, and they listed upcoming webinars on other tax topics.

Next steps: Eligible residents who received a FEMA decision letter and have gathered receipts for eligible purchases should prepare either an electronic submission at 10tap.tn.gov/eservices or a paper claim that includes the FEMA decision letter, invoices/receipts and contact information. An auditor will be assigned to review the claim and reach out if clarifications are needed.